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AMLO evokes mixed feelings in the markets

On the one hand, the president-elect of Mexico, Andrés López Obrador, wins the confidence of the consumers, but on the other hand the employers of the companies are a little more cautious with the signals that have been given in the last week by the center-left politician.

As commented by Luis Miguel González, who is the director of El Economista in México, AMLO has a boom of confidence in consumers in Mexico, this has been reflected in the INEGI survey, which is a statistical authority of Mexico, but not manages to catch the entrepreneurs as I would like.

Consumption is taken as a basis for analyses

Luis Miguel also comments that consumption accounts for 60% of Mexico’s GDP and this is one of the main determinants for shorter-term economic performance. When consumers feel optimistic, this is a very strong engine for the economy. However, a pessimistic feeling among consumers is a drag on economic activity.

By the end of July this year, the index helps minimize the impact it caused on the political scene, there was a great contagion of euphoria from politics to consumer expectations.

For the journalist and the economist, the different buyers of Mexico are satisfied and reveal their spirit, when they were exposed on the basis of how the national economy is estimated to behave for next year, many believe that it will be much better than in 2018.

To complement the aforementioned, according to the comments of El Economista’s senior position in a column, we have the entrepreneurs that decide on investments, as well as the levels of production and hiring of personnel and also the financial sector that opens or closes the key to credit and investments in the portfolio, such as the stock market and government bonds.

If estimates of Mexico’s consumer sector are one of the main drivers of the country’s economy in the short term, while entrepreneurs, according to Gonzalez, and the mood they have determine a large part of the economy’s performance for the medium and long term. Investments are now defined at the level of production in the coming months, while offering clues as to how much staff they need and how many inputs or services they need to hire from suppliers.

The highest point of the last two years is March 2018, when what predominates is the optimism for the successful conclusion of the trade pact in NAFTA, it changed its name and became USMAC; all this according to the INEGI. They all went up for the month of July, but not so much as to talk about a party, because they all fall in October, although there is no resounding collapse as such.

In addition, the senior official said that the INEGI survey was done before the results of the airport consultation, which is the new project that NAIM has which is the New International Airport of Mexico that was dismantled by AMLO.